Illinois General Assembly - Full Text of HB3121
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Full Text of HB3121  99th General Assembly

HB3121sam002 99TH GENERAL ASSEMBLY

Sen. Michael E. Hastings

Filed: 5/29/2015

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 3121

2    AMENDMENT NO. ______. Amend House Bill 3121 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Department of Revenue Law of the Civil
5Administrative Code of Illinois is amended by changing Section
62505-190 as follows:
 
7    (20 ILCS 2505/2505-190)  (was 20 ILCS 2505/39c-4)
8    Sec. 2505-190. Tax Compliance and Administration Fund.
9    (a) Amounts deposited into the Tax Compliance and
10Administration Fund, a special fund in the State treasury that
11is hereby created, must be appropriated to the Department to
12reimburse the Department for its costs of collecting,
13administering, and enforcing the tax laws that provide for
14deposits into the Fund. Moneys in the Fund shall consist of
15deposits provided for in tax laws, reimbursements, or other
16payments received from units of local government for

 

 

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1administering a local tax or fee on behalf of the unit of local
2government in accordance with the Local Tax Collection Act, or
3other payments designated for deposit into the Fund.
4    (b) As soon as possible after July 1, 2015, and as soon as
5possible after each July 1 thereafter, the Director of the
6Department of Revenue shall certify the balance in the Tax
7Compliance and Administration Fund as of July 1, less any
8amounts obligated, and the State Comptroller shall order
9transferred and the State Treasurer shall transfer from the Tax
10Compliance and Administration Fund to the General Revenue Fund
11the amount certified that exceeds $2,500,000.
12(Source: P.A. 98-1098, eff. 8-26-14.)
 
13    Section 10. The Retailers' Occupation Tax Act is amended by
14changing Section 11 as follows:
 
15    (35 ILCS 120/11)  (from Ch. 120, par. 450)
16    Sec. 11. All information received by the Department from
17returns filed under this Act, or from any investigation
18conducted under this Act, shall be confidential, except for
19official purposes, and any person who divulges any such
20information in any manner, except in accordance with a proper
21judicial order or as otherwise provided by law, shall be guilty
22of a Class B misdemeanor with a fine not to exceed $7,500.
23    Nothing in this Act prevents the Director of Revenue from
24publishing or making available to the public the names and

 

 

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1addresses of persons filing returns under this Act, or
2reasonable statistics concerning the operation of the tax by
3grouping the contents of returns so the information in any
4individual return is not disclosed.
5    Nothing in this Act prevents the Director of Revenue from
6divulging to the United States Government or the government of
7any other state, or any officer or agency thereof, for
8exclusively official purposes, information received by the
9Department in administering this Act, provided that such other
10governmental agency agrees to divulge requested tax
11information to the Department.
12    The Department's furnishing of information derived from a
13taxpayer's return or from an investigation conducted under this
14Act to the surety on a taxpayer's bond that has been furnished
15to the Department under this Act, either to provide notice to
16such surety of its potential liability under the bond or, in
17order to support the Department's demand for payment from such
18surety under the bond, is an official purpose within the
19meaning of this Section.
20    The furnishing upon request of information obtained by the
21Department from returns filed under this Act or investigations
22conducted under this Act to the Illinois Liquor Control
23Commission for official use is deemed to be an official purpose
24within the meaning of this Section.
25    Notice to a surety of potential liability shall not be
26given unless the taxpayer has first been notified, not less

 

 

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1than 10 days prior thereto, of the Department's intent to so
2notify the surety.
3    The furnishing upon request of the Auditor General, or his
4authorized agents, for official use, of returns filed and
5information related thereto under this Act is deemed to be an
6official purpose within the meaning of this Section.
7    Where an appeal or a protest has been filed on behalf of a
8taxpayer, the furnishing upon request of the attorney for the
9taxpayer of returns filed by the taxpayer and information
10related thereto under this Act is deemed to be an official
11purpose within the meaning of this Section.
12    The furnishing of financial information to a municipality,
13upon request of the Chief Executive thereof, is an official
14purpose within the meaning of this Section, provided the
15municipality agrees in writing to the requirements of this
16Section. Information provided to municipalities under this
17paragraph shall be limited to: (1) the business name; (2) the
18business address; (3) the standard classification number
19assigned to the business; (4) net revenue distributed to the
20requesting municipality that is directly related to the
21requesting municipality's local share of the proceeds under the
22Use Tax Act, the Service Use Tax Act, the Service Occupation
23Tax Act, and the Retailers' Occupation Tax Act distributed from
24the Local Government Tax Fund, and, if applicable, any locally
25imposed retailers' occupation tax or service occupation tax;
26and (5) (4) a listing of all businesses within the requesting

 

 

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1municipality by account identification number and address. On
2and after July 1, 2015, the furnishing of financial information
3to municipalities under this paragraph may be by electronic
4means.
5    Information so provided shall be subject to all
6confidentiality provisions of this Section. The written
7agreement shall provide for reciprocity, limitations on
8access, disclosure, and procedures for requesting information.
9    The Department may make available to the Board of Trustees
10of any Metro East Mass Transit District information contained
11on transaction reporting returns required to be filed under
12Section 3 of this Act that report sales made within the
13boundary of the taxing authority of that Metro East Mass
14Transit District, as provided in Section 5.01 of the Local Mass
15Transit District Act. The disclosure shall be made pursuant to
16a written agreement between the Department and the Board of
17Trustees of a Metro East Mass Transit District, which is an
18official purpose within the meaning of this Section. The
19written agreement between the Department and the Board of
20Trustees of a Metro East Mass Transit District shall provide
21for reciprocity, limitations on access, disclosure, and
22procedures for requesting information. Information so provided
23shall be subject to all confidentiality provisions of this
24Section.
25    The Director may make available to any State agency,
26including the Illinois Supreme Court, which licenses persons to

 

 

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1engage in any occupation, information that a person licensed by
2such agency has failed to file returns under this Act or pay
3the tax, penalty and interest shown therein, or has failed to
4pay any final assessment of tax, penalty or interest due under
5this Act. The Director may make available to any State agency,
6including the Illinois Supreme Court, information regarding
7whether a bidder, contractor, or an affiliate of a bidder or
8contractor has failed to collect and remit Illinois Use tax on
9sales into Illinois, or any tax under this Act or pay the tax,
10penalty, and interest shown therein, or has failed to pay any
11final assessment of tax, penalty, or interest due under this
12Act, for the limited purpose of enforcing bidder and contractor
13certifications. The Director may make available to units of
14local government and school districts that require bidder and
15contractor certifications, as set forth in Sections 50-11 and
1650-12 of the Illinois Procurement Code, information regarding
17whether a bidder, contractor, or an affiliate of a bidder or
18contractor has failed to collect and remit Illinois Use tax on
19sales into Illinois, file returns under this Act, or pay the
20tax, penalty, and interest shown therein, or has failed to pay
21any final assessment of tax, penalty, or interest due under
22this Act, for the limited purpose of enforcing bidder and
23contractor certifications. For purposes of this Section, the
24term "affiliate" means any entity that (1) directly,
25indirectly, or constructively controls another entity, (2) is
26directly, indirectly, or constructively controlled by another

 

 

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1entity, or (3) is subject to the control of a common entity.
2For purposes of this Section, an entity controls another entity
3if it owns, directly or individually, more than 10% of the
4voting securities of that entity. As used in this Section, the
5term "voting security" means a security that (1) confers upon
6the holder the right to vote for the election of members of the
7board of directors or similar governing body of the business or
8(2) is convertible into, or entitles the holder to receive upon
9its exercise, a security that confers such a right to vote. A
10general partnership interest is a voting security.
11    The Director may make available to any State agency,
12including the Illinois Supreme Court, units of local
13government, and school districts, information regarding
14whether a bidder or contractor is an affiliate of a person who
15is not collecting and remitting Illinois Use taxes for the
16limited purpose of enforcing bidder and contractor
17certifications.
18    The Director may also make available to the Secretary of
19State information that a limited liability company, which has
20filed articles of organization with the Secretary of State, or
21corporation which has been issued a certificate of
22incorporation by the Secretary of State has failed to file
23returns under this Act or pay the tax, penalty and interest
24shown therein, or has failed to pay any final assessment of
25tax, penalty or interest due under this Act. An assessment is
26final when all proceedings in court for review of such

 

 

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1assessment have terminated or the time for the taking thereof
2has expired without such proceedings being instituted.
3    The Director shall make available for public inspection in
4the Department's principal office and for publication, at cost,
5administrative decisions issued on or after January 1, 1995.
6These decisions are to be made available in a manner so that
7the following taxpayer information is not disclosed:
8        (1) The names, addresses, and identification numbers
9    of the taxpayer, related entities, and employees.
10        (2) At the sole discretion of the Director, trade
11    secrets or other confidential information identified as
12    such by the taxpayer, no later than 30 days after receipt
13    of an administrative decision, by such means as the
14    Department shall provide by rule.
15    The Director shall determine the appropriate extent of the
16deletions allowed in paragraph (2). In the event the taxpayer
17does not submit deletions, the Director shall make only the
18deletions specified in paragraph (1).
19    The Director shall make available for public inspection and
20publication an administrative decision within 180 days after
21the issuance of the administrative decision. The term
22"administrative decision" has the same meaning as defined in
23Section 3-101 of Article III of the Code of Civil Procedure.
24Costs collected under this Section shall be paid into the Tax
25Compliance and Administration Fund.
26    Nothing contained in this Act shall prevent the Director

 

 

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1from divulging information to any person pursuant to a request
2or authorization made by the taxpayer or by an authorized
3representative of the taxpayer.
4(Source: P.A. 98-1058, eff. 1-1-15.)
 
5    Section 15. The Local Tax Collection Act is amended by
6changing Section 1 as follows:
 
7    (35 ILCS 720/1)  (from Ch. 120, par. 1901)
8    Sec. 1. (a) The Department of Revenue and any unit of local
9government county or municipality may agree to the Department's
10collecting, and transmitting back to the unit of local
11government such county or municipality, any tax lawfully
12imposed by that unit of local government county or
13municipality, the subject of which is similar to that of a tax
14imposed by the State and collected by the Department of
15Revenue, unless the General Assembly has specifically required
16a different method of collection for such tax. However, the
17Department may not enter into a contract with any unit of local
18government municipality or county pursuant to this Act for the
19collection of any tax based on the sale or use of tangible
20personal property generally, not including taxes based only on
21the sale or use of specifically limited kinds of tangible
22personal property, unless the municipal or county ordinance
23adopted by the unit of local government imposes a sales or use
24tax which is substantively identical to and which contains the

 

 

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1same exemptions as the taxes imposed by the unit of local
2government's municipalities' or counties' ordinances
3authorized by the Home Rule or Non-Home Rule Municipal or
4County Retailers' Occupation Tax Act, the Home Rule or Non-Home
5Rule or the Municipal or County Use Tax, or any other
6Retailers' Occupation Tax Act or Law that is administered by
7the Department of Revenue, as interpreted by the Department
8through its regulations as those Acts and as those regulations
9may from time to time be amended.
10    (b) Regarding the collection of a tax pursuant to this
11Section, the Department and any person subject to a tax
12collected by the Department pursuant to this Section shall, as
13much as practicable, have the same rights, remedies,
14privileges, immunities, powers and duties, and be subject to
15the same conditions, restrictions, limitations, penalties,
16definitions of terms and procedures, as those set forth in the
17Act imposing the State tax, the subject of which is similar to
18the tax being collected by the Department pursuant to this
19Section. The Department and unit of local government county or
20municipality shall specifically agree in writing to such
21rights, remedies, privileges, immunities, powers, duties,
22conditions, restrictions, limitations, penalties, definitions
23of terms and procedures, as well as any other terms deemed
24necessary or advisable. All terms so agreed upon shall be
25incorporated into an ordinance of such unit of local government
26county or municipality, and the Department shall not collect

 

 

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1the tax pursuant to this Section until such ordinance takes
2effect.
3    (c) (1) The Department shall forthwith pay over to the
4State Treasurer, ex officio, as trustee, all taxes and
5penalties collected hereunder. On or before the 25th day of
6each calendar month, the Department shall prepare and certify
7to the Comptroller the disbursement of stated sums of money to
8named units of local government cities and counties from which
9retailers or other taxpayers have paid taxes or penalties
10hereunder to the Department during the second preceding
11calendar month.
12    (i) The an amount to be paid to each unit of local
13government county and municipality, which shall equal the taxes
14and penalties collected by the Department for the unit of local
15government such county or municipality pursuant to this Section
16during the second preceding calendar month (not including
17credit memoranda), plus an amount the Department determines is
18necessary to offset any amounts which were erroneously paid to
19a different taxing body, and not including (i) an amount equal
20to the amount of refunds made during the second preceding
21calendar month by the Department of behalf of such county or
22municipality and (ii) any amount which the Department
23determines is necessary to offset any amounts which are payable
24to a different taxing body but were erroneously paid to the
25municipality or county, less 2% of the balance, or any greater
26amount of the balance as provided in the agreement between the

 

 

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1Department and the unit of local government required under this
2Section, which sum shall be retained by the State Treasurer.
3total amount of taxes and penalties collected by the Department
4for such county or municipality pursuant to this Section or the
5actual cost of collection of such taxes and penalties
6determined pursuant to the agreement described in subsection
7(b), whichever is less, which shall be retained by the State;
8and
9    (ii) With respect to the total amount to be retained by the
10State Treasurer pursuant to subparagraph (i), the Department,
11at the time of each monthly disbursement to the units of local
12government, shall prepare and certify to the Comptroller the
13amount so retained by the State Treasurer, which shall be
14transferred such amount to be deposited into the Tax Compliance
15and Administration General Revenue Fund of the State treasury
16and used by the Department, subject to appropriation, to cover
17the costs incurred by the Department in collecting such taxes
18and penalties.
19    (2) Within 10 7 days after receiving the certifications
20described in paragraph (1), the Comptroller shall issue orders
21for payment of the amounts specified in subparagraph (i) of
22paragraph (1).
23    (d) Any home rule unit of local government which imposes a
24tax collected by the Department pursuant to this Section
25substantially similar to a State imposed tax, or which imposes
26a tax which is intended to be collected from a retail purchaser

 

 

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1of goods or services at the same time a similar State tax is
2also collected, must file a certified copy of the ordinance
3imposing the tax with the Department within 10 days after its
4passage. Beginning on the effective date of this amendatory Act
5of the 99th General Assembly, an ordinance or resolution
6imposing or discontinuing a tax collected by the Department
7under this Section or effecting a change in the rate thereof
8shall either (i) be adopted and a certified copy thereof filed
9with the Department on or before the first day of April,
10whereupon the Department shall proceed to administer and
11enforce the tax imposition, discontinuance, or rate change as
12of the first day of July next following the adoption and
13filing; or (ii) be adopted and certified copy thereof filed
14with the Department on or before the first day of October,
15whereupon the Department shall proceed to administer and
16enforce the tax imposition, discontinuance, or rate change as
17of the first day of January next following the adoption and
18filing. No such ordinance shall become effective until it is so
19filed. Any home rule unit of local government which has enacted
20such an ordinance prior to the effective date of this Act shall
21file a copy of such ordinance with the Department within 90
22days after the effective date of this Act.
23    (e) It is declared to be the law of this State, pursuant to
24paragraph (g) of Section 6 of Article VII of the Illinois
25Constitution, that this amendatory Act of 1988 is a denial of
26the power of a home rule unit to fail to comply with the

 

 

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1requirements of paragraphs (d) and (e) of this Section.
2(Source: P.A. 85-1215.)
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.".